The shares of Tesla’s car rental business have hit an all-Time high after a deal with the car rental giant was announced.
Tesla CEO Elon Musk said Tuesday that the car company had agreed to pay $5 million a year to the company, which will provide its cars to customers.
Musk also announced a $2.5 billion acquisition of rival car rental service Lyft.
Musk has been vocal about the potential to expand the company’s car rentals program.
The new deal is one of several announced by Tesla this year to bolster its rental business.
The company said it would increase its fleet by 30% by the end of 2018 and added new locations in Washington, Maryland, Texas, New York, and California.
In the new deal, Tesla will provide cars to Lyft for $5 per day, with $2 a day for each extra mile traveled.
Musk said that Tesla was looking to “bring on additional local partners” in addition to Lyft.
“Our goal is to offer a seamless experience for the vast majority of users and customers, while maximizing the amount of time they can spend on the road,” Musk said in a statement.
Tesla also said it plans to add additional locations in the coming months.
“We have a very diverse customer base with a wide variety of needs, including travel, personal and professional travel, business travel, and leisure,” Tesla said in the statement.
The deal is a major milestone for Tesla.
Earlier this month, Tesla agreed to acquire Otto, a personal-care company.
The purchase will provide access to some of the biggest brands in the home care industry, including Amazon, Walmart, and Whole Foods.
The acquisition of Otto comes just two weeks after the stock market tumbled more than 25% from its highs.